News & Press

U.S. Ninth Circuit Court of Appeals Grants Stay of Preliminary Injunction of AB 219

On December 16, the U.S. Ninth Circuit Court of Appeals granted a motion to stay  the October 18 preliminary injunction issued by the district court that temporarily prohibited the California Department of Industrial Relations (DIR) and the Labor Commissioner from enforcing the new prevailing wage requirements under AB 219.

The Ninth Circuit U.S. Court also ordered consolidation of the appeals of the Director of the Department of Industrial Relations, the Labor Commissioner and the International Brotherhood of Teamsters' of the district court's preliminary injunction.

Advisory of DIR's Enforcement - The DIR has stated that it intends to enforce all prevailing wage requirements from AB 219’s effective date of July 1, 2016, to the full extent allowed by law, if their appeal is successful.

Since final decisions have not been made by the courts, contractors and concrete suppliers should be aware that if they choose not to pay prevailing wages to workers on applicable public works projects, they may be subject to claims for unpaid wages and penalties.

AB 219 Background - The U.S. District Court issued a Preliminary Injunction Order on October 18, 2016, blocking implementation and enforcement of the recent AB 219 legislation. AB 219 Labor Code §1720.9, adding the delivery of ready-mix concrete to the list of activities covered by California Prevailing Wage Law. (Reminder - AB 219 does not apply to public works contracts advertised for bid or awarded prior to July 1, 2016.)

AGC continues to advise that contractors and material suppliers consult with their attorney should they have any questions.